Property Tax Exemptions

A general residence homestead exempts a portion of your residence homestead's value from taxation, potentially lowering your taxes. Tax Code Section 11.13(b) requires school districts to provide a $100,000 exemption on a residence homestead and Tax Code Section 11.13(n) allows any taxing unit to adopt a local option residence homestead exemption of up to 20 percent of a property's appraised value. The local option exemption cannot be less than $5,000. Tax Code Section 11.13(a) requires counties that collect farm-to-market or flood control taxes to provide a $3,000 residence homestead exemption.

For example, if your home is appraised at $300,000 and you qualify for a $100,000 exemption (amount mandated for school districts), you will pay school taxes on the home as if it was worth only $200,000. Taxing units have the option to offer an additional exemption of up to 20 percent of the total value.

To qualify for the general residence homestead exemption, a home must meet the definition of a residence homestead and an individual must have an ownership interest in the property and use the property as the individual's principal residence. An applicant is required to state that he or she does not claim an exemption on another residence homestead in or outside of Texas. If the property owner acquires the property after Jan. 1, they may receive the general residence homestead exemption for the applicable portion of the tax year immediately on qualification of the exemption if the previous owner did not receive the same exemption for the tax year.

Contact your local appraisal district, for more information regarding eligibility.

Heir property is property owned by one or more individuals, where at least one owner claims the property as a residence homestead, and the property was acquired by will, transfer on death deed, or intestacy. An heir property owner not specifically identified as the residence homestead owner on a deed or other recorded instrument in the county where the property is located must provide the appraisal district:

• an affidavit establishing an ownership interest in the property;
• a copy of the prior property owner's death certificate;
• a copy of the property's most recent utility bill; and
• a citation of any court record relating to the applicant's ownership of the property, if available.

Each heir property owner who occupies the property as a principal residence, other than the applicant, must provide an affidavit that authorizes the submission of the application.

An owner may record their interest in the heir property in the county where the property is located with the local county clerk. Applicants may find a list of individuals and organizations that may provide free or reduced-fee legal assistance with the State Bar of Texas at https://www.texasbar.com/.

For persons age 65 or older or disabled, Tax Code Section 11.13(c) requires school districts to provide an additional $10,000 residence homestead exemption. Tax Code Section 11.13(d) allows any taxing unit to adopt a local option residence homestead exemption. This local option exemption cannot be less than $3,000.

To qualify for the age 65 or older residence homestead exemption, the individual must be age 65 or older, have an ownership interest in the property and live in the home as his or her principal residence. A surviving spouse age 55 or older may be eligible for their deceased spouse’s age 65 or older exemption if the deceased spouse dies in a year that they qualified for the exemption and lives in the home as his or her primary residence.

A disabled person must meet the definition of disabled for the purpose of receiving disability insurance benefits under the Federal Old-Age, Survivors and Disability Insurance Act administered by the Social Security Administration. Disability benefits from any other program do not automatically qualify you for the exemption. To prove eligibility, you may need to provide the appraisal district with supporting documents regarding your disability. Your local appraisal district can provide information regarding the supporting documents required.

An eligible disabled person age 65 or older may receive both exemptions in the same year, but not from the same taxing units. Contact the appraisal district for more information.

Texas provides for a disabled veteran exemption if the property and property owner meet the qualifications. A disabled veteran exemption can exempt a portion or the total property value. An exemption amount is determined by the disability rating issued by the U.S. Veterans Administration or the branch of the armed services in which the veteran served. Certain disabled veteran exemptions apply to a qualifying residence homestead, while others can be applied to any one property owned by the qualifying individual.

Tax Code Section 11.22 provides a partial exemption for any one property owned by a disabled veteran. The amount of the exemption varies depending on the disabled veteran's disability rating. The surviving spouse who remains unmarried and surviving children of a disabled veteran may also qualify for an exemption under this section. The application for the exemption under Tax Code Section 11.22 is Form 50-135, Disabled Veteran's or Survivor's Exemption Application (PDF).

Tax Code Section 11.132 provides a partial exemption for a residence homestead donated to a disabled veteran by a charitable organization which may also extend to the surviving spouse of the disabled veteran who has not remarried if the property was the residence homestead of the surviving spouse when the qualifying deceased spouse died and the property remains his or her residence homestead. The amount of the exemption is based on the disabled veteran's disability rating. The application for the exemption under Tax Code Section 11.132 is Form 50-114, Residence Homestead Exemption Application (PDF).

Tax Code Section 11.133 entitles a surviving spouse of a member of the U.S. armed services killed or fatally injured in the line of duty to a total property tax exemption on his or her residence homestead if the surviving spouse has not remarried since the armed services member's death. The application for the exemption under Tax Code Section 11.133 is Form 50-114, Residence Homestead Exemption Application (PDF).

Tax Code Section 11.131 entitles a disabled veteran awarded 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or of individual unemployability to a total property tax exemption on the disabled veteran's residence homestead, as determined by the U.S. Department of Veterans Affairs. The application for the exemption under Tax Code Section 11.131 is Form 50-114, Residence Homestead Exemption Application (PDF).

This exemption extends to a surviving spouse who was married to a disabled veteran who qualified or would have qualified for this exemption if it has been in effect at the time of the veteran's death provided:

• the surviving spouse has not remarried;
• the property was the surviving spouse's residence homestead when the veteran died; and
• the property remains the surviving spouse's residence homestead.

The application for the surviving spouse exemption under Tax Code Section 11.131 is Form 50-114, Residence Homestead Exemption Application (PDF).

Tax Code Section 11.134 entitles a surviving spouse of certain first responders killed or fatally injured in the line of duty to a total property tax exemption on his or her residence homestead if the surviving spouse has not remarried since the first responder's death. The application for the exemption under Tax Code Section 11.134 is Form 50-114, Residence Homestead Exemption Application (PDF).

The Comptroller's Solar and Wind-Powered Energy Device Exemption Guidelines (PDF) assist local officials in the administration of the exemption for solar and wind-powered energy devices and are published as required by Tax Code Section 11.27. The application for this exemption is Form 50-123, Exemption Application for Solar or Wind-Powered Energy Devices (PDF).

Texas law allows for a number of exemptions for charitable organizations and businesses. Please refer to the Comptroller's publication Texas Property Tax Exemptions (PDF) for more information about these exemptions. Most of these exemptions have specific application forms that can be found through the exemption forms link in the resource list above.